I’ve apparently wasted the last 3 months of my life research LP farming, etc since I don’t see any people asking similar questions or any content available to address concerns like why would someone provide $1K of liquidity for the privilege of farming $4 of tokens it costs upwards of $200 in fees to extract. Just me?
For small investors (every investor except for retail investors like custodial service providers) the gas prices on Ethereum truly prices you out of most of what is going on within the DeFi space. In order to get any substantial profit using DeFi on Ethereum I’d suggest making your minimum amount of money in a single swap/providing liquidity to a pool to be greater than $5000. I personally may break even on a $6000 deposit into Compound Finance’s app, and at one point it was earning over 21% APY!!!
If you really want to get your hands on DeFi, either fork up more of an investment or, do what I did… Start transferring/converting your assets into Binance Smart Chain (BSC) compatible alternatives. Its a little confusing at first, knowing exactly what types of addresses are BEP2 or BEP20 or BSC compatible, so just be careful and double check your wallet software (Metamask, Trust Wallet, etc). Binance has also made it about as easy as I could imagine to convert between the BEP2 and BSC assets and also most wallets compatible have a built-in exchange/swap function.
Don’t give up on DeFi! It’s going to be around for a bit…